Abu Dhabi National Oil Company (Adnoc) has formally announced contract awards, worth about $245m, for two key projects to upgrade infrastructure at its Jebel Dhanna crude oil export terminal in Abu Dhabi.

MEED previously reported that state-owned China Petroleum Pipeline Engineering (CPPE) had been awarded the main contract for the project to replace main oil lines (MOL), while local contractor Target Engineering had won the contract for the project to upgrade crude receiving facilities at the Jebel Dhanna terminal.

MOL replacement project

On 9 September, Adnoc said the value of CPPE’s contract is $135m.

The scope of work on the project covers engineering, procurement and construction (EPC) works to replace the two MOLs – MOL 1.2 and 3.5 – which transport Adnoc’s premium grade Murban crude oil from its onshore oil fields at Bab, Bu Hasa, North East Bab (NEB) and South East (SE) to the Jebel Dhanna terminal, increasing the capacity of the pipelines by more than 30 per cent.

The contract is expected to be completed in 30 months and will see over 45 per cent of the award value flow back into the UAE economy under Adnoc’s In-Country Value (ICV) localisation programme, the UAE energy giant said in a statement.

CPPE confirmed it had been awarded the MOL replacement project by Adnoc Onshore on 1 September, but did not mention the value of its contract.

Crude receiving facilities upgrade

The contract awarded to Target Engineering Construction is valued at approximately $110m, Adnoc said.

The scope of work on this project covers EPC works to upgrade the crude receiving facilities at the Jebel Dhanna terminal. This will enable Adnoc to use parts of the terminal’s existing facilities to import Upper Zakum crude oil from offshore and Non-System (NS) crude, for delivery to the new Ruwais Refinery West (RRW) project, located approximately 12 kilometres to the east of the Jebel Dhanna terminal.

“This ability to import other grades of crude at Jebel Dhanna following the completion of the project will provide Adnoc greater flexibility, highlighting how the company is extracting value from every barrel of crude it produces," said Adnoc. "The terminal was originally conceived and operated as a Murban crude oil export facility since its inception in the 1960s.”

The contract is expected to be completed in 20 months and will see over 60 per cent of the award value to Target Engineering flow back into the local economy under the ICV scheme.

ALSO READ: Adnoc presses ahead with onshore projects

MEED's September 2020 UAE market report includes:

> Government: Abu Dhabi deals in domestic and diplomatic stimulus
> Economy: UAE economic activity heads for tepid recovery
> Banking: UAE banks seek path through Covid crisis
> Upstream: Adnoc presses ahead with onshore projects
> Petchems: Abu Dhabi bolsters regional petrochemicals market
> Construction: A very different crisis for UAE construction
> Power & water: UAE utilities sector progresses amid crisis
> Real estate: Profits decline at Dubai real estate companies
> City planning: Pandemic refocuses urban design priorities
> Databank: UAE economic activity turns the corner